Analysis: Overdue DC Sports Betting Audit Likely to Show GambetDC Errors
The rollout of DC Sports betting has been less than perfect since then Intralot ‘s contract went nuts DC Council more than two years ago.
It is therefore only fitting that a deep dive into market performance should be delayed because the examining bureau did not know it had to.
The District Columbia Auditor’s Office missed a requirement that required a fresh look at the market two years after the Sports Betting Act came into effect:
“Twenty-four months after the effective date of this title, the District of Columbia Auditor Office is preparing a study evaluating the performance of sports betting introduced by this title to determine the amount of district revenue generated by mobile and online gaming in the Settlements are reached to other similarly located jurisdictions and submit the completed study to the mayor and the council. “
The DC sports betting review was due May 3. Now it couldn’t be seen until that end of JuneAccording to DC Auditor Kathy Patterson.
DC sports betting does not require a mobile monopoly
Perhaps the most frustrating part of sports betting in DC is that there is no legal requirement to give Intralot a district-wide mobile monopoly:
“The Office can offer a mobile or online sports betting product by either taxing mobile and online licensed retailers at a rate of 20% with no limit on the number of licenses granted, or by entering into a contract with a limited number of partners to operate a lottery and gambling bureau for mobile and web-based sports betting, whichever is proven to generate the most revenue for the district. “
This means that depending on what the audit shows, an update for the DC market is imminent. The first year of GambetDC did not go exactly according to plan with missed and lowered forecasts.
Not a lot of additional details about the exam
Aside from the hopeful June end date, Patterson didn’t have much else to say about the trial.
“We have selected the other jurisdictions to be reviewed and are in the process of conducting interviews and obtaining all relevant data from the lottery,” she told LSR.
DC Councilor Kenyan McDuffie, Chairman of the Economic and Economic Development Committee The March Sports Betting Hearing did not respond to requests for comment.
GambetDC has developed significantly below average
Patterson didn’t mention what other jurisdictions would be compared to DC, but it might not really matter. The most illuminating story is how GambetDC fared compared to its only competitor in the district. William Hill.
William Hill, who started with a temporary sports betting at Capital One Arena Mobile added in July and January, the clear sports betting is the preference in the district. Even with the mobile app, this is only available within one Two block radius the arena.
The total DC handle since launch through April is $ 137.6 million, of which $ 102.9 million came from William Hill. Sports betting revenues are $ 21.6 million, $ 15.4 million of which is from William Hill. That said, the sports betting is limited to personal bets and a geofenced app 74.8% of handle and 71.3% of revenue.
The overall benefit to Washington DC is somewhat unclear so far. William Hill paid $ 1.5 million for taxes, while GambetDC works on a revenue share model. The DC Lottery said about it 50% the gross gaming revenue is profit for the lottery. It didn’t work out that way Fiscal year 2020.
From GambetDCs 956,062 USD in revenue from launch to 30. September just $ 352,000 was transferred to the lottery.
DC would likely have benefited from an open model
While it’s impossible to say for sure, it seems that DC Sports Betting would have been much better off with an open mobile model. That could be the case even if William Hill were the sole operator.
The taxes paid by William Hill would have doubled $ 3.1 million. This does not include the additional measures that would have been taken in the market without GambetDC.
Even if GambetDC got it 50% from the revenue from the launch to April it would only be $ 3.1 million.
William Hill probably wouldn’t have been the only sports betting. Operators like BetMGM and FanDuel Sports Betting DC Sports Betting partnerships also have limited operations. BetMGM’s approval is pending pending a full application. FanDuel has not yet started the process.
The lottery platform could have been more successful with better odds. The lottery said that LSR GambetDC is not designed to “pay off” like a “casino-style sportsbook” or “attract high stake bettors”.
DC sports betting continues to receive new competition
It just gets harder to get betting money from commuters from here.
Sports betting in Maryland was officially legalized when Governor Larry Hogan signed the bill into law Tuesday. That means that DC will be surrounded by legal sports betting states afterwards become Sports betting started in January.
There are already 10 Licensed online sports betting for Virginia, with up to five more on the way. Maryland could have done it by now 60 Cellular operator.
That means both states are likely to offer sports betting with sign-up bonuses and promotions that are not available in DC as there is little competition.
In other words, DC needs to find a way to its sports betting market that is worth staying in the district for.